16) General Substantive Procedures Flashcards
under which stage of the audit does TOC and SP fall?
risk response stage
which risks are meant to be mitigated by controls set by mgmt?
- integrity of info
- operational objectives
what can we conclude when we see that controls are working effectively?
that we can rely on them and can perform fewer substantive procedures
what is a TOC?
an audit procedure designed to assess the effectiveness of controls at PDC-ing any material misstatements at the assertion level
what are the four types of TOCs?
- inspect
- observe
- reperform
- enquire
which TOC types are the least reliable (on their own)?
- observing
- enquiring
what is a substantive procedure?
an audit procedure designed to detect any MM at the assertion level, directly in the FS
what can SPs be split into?
- ARPs
- tests of detail
what are the two types of tests of detail?
- general
- specific
what are general tests of detail?
can be performed on any account being tested
what are specific tests of detail?
tests which are specific to the account and which are triggered by the scenario
what are the audit verbs for tests of detail?
- inspect
- observe
- enquire
- reperform
- recalculate
- confirm
how do we test occurrence / existence?
from acc record to the source / physical item
how do we test for completeness?
from source / physical item to acc record
what are substantive ARPs?
evaluations of financial information and analyzing the relationships in data
